Record Slowdown in 300 Years As Economy Shrinks 19%

Lockdown restrictions that were put into place during the 3-month lockdown have shown their teeth as official data shows the economy UK reduced by 19%.

Figures published today by the Office of National Statistics saw in the 3 months to May a record decline in gross domestic product by 19.1%.

In May there was actually a 1.8% rise but not nearly enough to counter the 6.9% fall in March and April’s 20.4% contraction.

The Duty National Statistician for Economic Statistics Jonathan Athow, said: “The are signs of recovery in the house building and manufacturing as staff started to return to work”.

The worst hit, falling 72%, was accommodation and food services.  Retail saw some signs of picking up with online purchases.  Construction fell 29.8%, Services by 18.9% and production fell by 15.5%.

The UK’s blue-chip index opened this morning on a 1% drop while the FTSE 250 fell by 1.4%.

Comment

No surprises with the figures.  It is now all about planning for recovery whilst being mindful of a second wave of coronavirus.